DCEL (Digicel Group) Debt-to-EBITDA : 7.31 (As of Mar. 2015)

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What is Digicel Group Debt-to-EBITDA?

Digicel Group DCEL Debt-to-EBITDA is 7.31 as of Mar. 2015.

Debt-to-EBITDA measures a company's ability to pay off its debt.

Digicel Group's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2015 was $163.23 Mil. Digicel Group's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2015 was $6,305.51 Mil. Digicel Group's annualized EBITDA for the quarter that ended in Mar. 2015 was $884.69 Mil. Digicel Group's annualized Debt-to-EBITDA for the quarter that ended in Mar. 2015 was 7.31.

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.

The historical rank and industry rank for Digicel Group's Debt-to-EBITDA or its related term are showing as below:

DCEL's Debt-to-EBITDA is not ranked *
in the Telecommunication Services industry.
Industry Median: 2
* Ranked among companies with meaningful Debt-to-EBITDA only.

Digicel Group  (NYSE:DCEL) Debt-to-EBITDA Explanation

In the calculation of Debt-to-EBITDA, we use the total of Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation divided by EBITDA. In some calculations, Total Liabilities is used to for calculation.


Be Aware

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.

According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.


Digicel Group Debt-to-EBITDA Related Terms


Digicel Group Debt-to-EBITDA Historical Data

* Premium members only.

The historical data trend for Digicel Group's Debt-to-EBITDA can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Digicel Group Debt-to-EBITDA Chart

Digicel Group Annual Data
Trend Mar13 Mar14 Mar15
Debt-to-EBITDA
0.00 5.63 7.31

Digicel Group Semi-Annual Data
Mar13 Mar14 Mar15
Debt-to-EBITDA 0.00 5.63 7.31

DCEL vs DIRV, FULO, TOWTF: Debt-to-EBITDA Comparison

For the Telecom Services subindustry, Digicel Group's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Digicel Group Debt-to-EBITDA vs Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, Digicel Group's Debt-to-EBITDA distribution charts can be found below:

* The bar in red indicates where Digicel Group's Debt-to-EBITDA falls into.



Digicel Group Debt-to-EBITDA Calculation

Debt-to-EBITDA measures a company's ability to pay off its debt.

Digicel Group's Debt-to-EBITDA for the fiscal year that ended in Mar. 2015 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(163.227 + 6305.513) / 884.687
=7.31

Digicel Group's annualized Debt-to-EBITDA for the quarter that ended in Mar. 2015 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(163.227 + 6305.513) / 884.687
=7.31

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data, the EBITDA data used here is one times the quarterly (Mar. 2015) EBITDA data.

Frequently Asked Questions Learn more about Debt-to-EBITDA →
What does a Debt-to-EBITDA of 7.31 mean?
Digicel Group (DCEL) has a Debt-to-EBITDA of 7.31 as of Mar. 2015. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Digicel Group.
Is Digicel Group's Debt-to-EBITDA too high?
Digicel Group's current Debt-to-EBITDA is 7.31. The Telecommunication Services industry median Debt-to-EBITDA is 2.00. Digicel Group's value of 7.31 is 265.5% above this industry median.
How does Digicel Group's Debt-to-EBITDA compare to DIRV and FULO?
Digicel Group's Debt-to-EBITDA of 7.31 can be compared against companies in the Telecommunication Services industry. The industry median Debt-to-EBITDA is 2.00. Digicel Group's value of 7.31 is 265.5% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-EBITDA for a Telecommunication Services company?
The median Debt-to-EBITDA among Telecommunication Services companies is 2.00, based on 302 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Digicel Group's current Debt-to-EBITDA of 7.31 is 265.5% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Debt-to-EBITDA mean?
A high Debt-to-EBITDA can signal that a stock is expensive relative to its fundamentals. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Digicel Group. For the Telecommunication Services industry, the median Debt-to-EBITDA is 2.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Digicel Group's current Debt-to-EBITDA is 7.31. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Digicel Group stock overvalued right now?
Digicel Group (DCEL) has a current Debt-to-EBITDA of 7.31. The current Debt-to-EBITDA is 7.31 and 265.5% above the Telecommunication Services industry median of 2.00. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-EBITDA calculated?
Debt-to-EBITDA is calculated from a company's financial statements. For Digicel Group (DCEL), the current Debt-to-EBITDA is 7.31 as of Mar. 2015. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Digicel Group Business Description

Digicel Group Ltd was incorporated under the laws of Bermuda on February 5, 2007. The Company is a provider of communications services in the Caribbean and South Pacific regions. It provides a comprehensive range of mobile communications, business solutions, cable TV & broadband and other related products and services to retail, corporate (including small and medium-sized enterprises) and government customers. Its business is currently organized into nine reporting segments: Jamaica, Trinidad and Tobago, French West Indies, Haiti, El Salvador, Eastern Caribbean markets consisting of its operations in St. Lucia, Grenada and St. Vincent and the Grenadines, Guyana, Papua New Guinea and Other locations, consisting of its operations in all of its other markets. It has customer reach through 1,034 retail locations (including 667 exclusive stores) and a dealer and distributor network with approximately 183,000 recharge locations. It offers its services on both a prepaid and post-paid basis and market to retail and business customers. It caters to its retail customers through Digicel's dealer channel and to its corporate clients via a business channel. Its distribution channel is comprised of the four distinct categories: Vendor Stores, Third-Party Dealers, Prepaid Card Outlets, and Diaspora. The Company's Mobile and Cable TV & Broadband operations are subject to regulation in each of the markets in which it operates.